Post Utme Esut 2020 Commerce Question 31

Practice objective / multiple choice question 31 from the 2020 Post Utme Esut Commerce examination.

Post Utme Esut 2020 Commerce Objective / Multiple Choice

Question 31 POST_UTME_ESUT • 2020 • COMMERCE • objective

A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.

A. The owner's personal assets are protected from business debts.

Correct Answer B. The owner's personal assets are liable for business debts.

C. The business is liable for the owner's personal debts.

D. The owner's personal debts are not affected by the business.

Correct Answer

Correct Option:

The owner's personal assets are liable for business debts.

This is Post Utme Esut 2020 Commerce Question 31. It is one of the objective questions from the 2020 Post Utme Esut Commerce examination.

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